First Solar to Release Q3 Earnings: Here's What You Need to Know

First Solar FSLR is scheduled to release third-quarter 2025 results on Oct. 30, after market close. The company delivered an earnings surprise of 18.7% in the last reported quarter. 

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors That Might Have Impacted FSLR’s Q3 Performance

Sales of First Solar's products have been expanding due to the steadily rising demand for solar energy worldwide, supported by rising energy consumption, declining installation costs, and rising awareness of sustainable energy. This is expected to have had a favorable impact on the upcoming results.

In the third quarter of 2025, First Solar is expected to have benefited significantly from the Section 45X advanced manufacturing production tax credit, which provides incentives for U.S.-made solar components. This credit effectively reduces First Solar’s production costs for domestically manufactured modules. During the quarter, the company expects to recognize $390-$425 million in Section 45X credits, which is anticipated to have enhanced profitability and cash flow.

However, tariffs are likely to weigh modestly on First Solar’s third-quarter 2025 results by increasing import costs and slightly pressuring margins. The company expects tariff-related expenses on imported finished goods and raw materials, which could have raised the cost of goods sold and reduced profitability. 

The company’s third-quarter earnings are expected to have been adversely impacted due to a shift in sales mix for its modules, with more modules now directed to the lower-priced Indian market instead of the United States. This is due to tariff-related constraints on Southeast Asia production. 

High module production costs of domestic U.S. module volume and underutilization charges from running the Malaysia and Vietnam factories at lower-than-full production capacity are likely to have impacted the company’s overall bottom-line performance in the to-be-reported quarter.

FSLR’s Q3 Expectations

First Solar expects third-quarter earnings to be in the range of $3.30-$4.70 per share. The Zacks Consensus Estimate for earnings is pegged at $4.31 per share, indicating a year-over-year increase of 48.1%.

The Zacks Consensus Estimate for revenues is pinned at $1.53 billion, implying a 72.4% increase year over year.

First Solar expects third-quarter module sales to be in the range of 5,000-6,000 megawatt (MW). The Zacks Consensus Estimate for Modules MW sold is pinned at 5,185.97 MW compared with 2,956 MW sold in the year-ago quarter.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for First Solar this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here as you will see below.
 

First Solar, Inc. Price and EPS Surprise

First Solar, Inc. price-eps-surprise | First Solar, Inc. Quote

Earnings ESP: The company’s Earnings ESP is +1.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, First Solar carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors may also consider the following players from the same sector, as these too have the right combination of elements to post an earnings beat this reporting cycle.

Enphase Energy ENPH is likely to come up with an earnings beat when it reports third-quarter results on Oct. 28. It has an Earnings ESP of +11.90% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for third-quarter earnings is pinned at 62 cents per share, which implies a year-over-year decrease of 4.6%. 

Archrock AROC is likely to come up with an earnings beat when it reports third-quarter results on Oct. 28. It has an Earnings ESP of +7.32% and a Zacks Rank #2 at present.

AROC’s long-term (three to five years) earnings growth rate is 12%. The Zacks Consensus Estimate for earnings is pinned at 41 cents per share, indicating a year-over-year increase of 46.4%.

Constellation Energy Corporation CEG is likely to come up with an earnings beat when it reports third-quarter results on Nov. 7. It has an Earnings ESP of +0.11% and a Zacks Rank #3 at present.

CEG’s long-term earnings growth rate is 16.22%. The Zacks Consensus Estimate for earnings is pinned at $3.01 per share, indicating a year-over-year increase of 9.9%.

 

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This article originally published on Zacks Investment Research (zacks.com).

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